Bill English

National Finance Spokesperson

Friday 29 September 2000

NZ economy under severe stress

Today's GDP figure shows the severe stress New Zealand is under because of bad economic policy and management, National Finance spokesperson Bill English said today.

"The economy was 0.7% smaller in June than in March. Most of the reason for this can be directly sheeted home to the uncertainty and pessimism that the Government has created in the last 9 months.

"We've seen 10,000 jobs lost in the last six months. Now we have the economy contracting. Put that alongside a record low exchange rate and double-digit price rises and we're in really bad shape.

"Some commentators expect that activity will bounce back in the next quarter. Let's hope they're right.

"With strong global demand and a competitive exchange rate, this economy should be firing on all cylinders.

"But sadly for New Zealand under the policy settings of this Government, any bounce-back in activity will remain well below the economy's potential," Mr English said.

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